City of Greater Bendigo Annual Budget 2014/2015

9.2 Current Year Rate Increase
It is predicted that the 2014/2015 operating position will be impacted by growth in services, labour
costs and general cost increases. It will therefore be necessary in the future to carefully monitor the
revenue growth from rates and charges while containing costs in order to maintain capital
expenditure at a reasonable level and a sound financial position. The contribution from working
capital/operations towards capital investments for the 2014/2015 year is adequate with the balance
of funds required coming from reserves and loan borrowings.
In order to achieve the objectives of maintaining service levels and a substantial capital expenditure
program, total income from general rates will increase by 6.00% with the municipal charge being
discontinued (was $32.40 in 2013/14). The reduction in municipal charge income is allocated into
each differential rate. The rates in the dollar, taking into account the reduced municipal charge in
2011/2012, 2012/2013, 2013/2014 and 2014/2015, maintain the approximate differential between the
various rate categories as follows:
Farm Rate is 85% of the general rate
Commercial/industrial A is 185% of the general rate
Commercial/industrial B is 180% of the general rate
Commercial/industrial C is 190% of the general rate
Vacant land is 125% of the general rate
The garbage charge will increase by 5.47% for 140 litre bins, 5.94% for 240 litre bins, and the
recycling charge will increase by 2.5%, raising a total of $93.39 million total rates and charges,
including $1.93 million generated from supplementary rates. Garbage charges increase annually to
cover additional waste management costs, EPA Environmental Landfill Levy increase and continued
carbon pricing costs.
9.3 Rating Structure
City of Greater Bendigo has established a rating structure which is comprised of three key elements.
These are:
Property values, which reflect capacity to pay
A user pays component to reflect usage of waste collection services provided by City of
Greater Bendigo
A user pays component to reflect usage of recycle waste collection services provided by the
City of Greater Bendigo
In establishing this rating structure, City of Greater Bendigo has taken account section 3C(1) of the
Local Government Act – “The primary objective of a Council is to endeavor to achieve the best
outcomes for the local community having regard to the long term and cumulative effects of
decisions” and section 3C(2)(f) requires Council must ensure the “equitable imposition of rates and
charges”. City of Greater Bendigo has had regard to the Ministerial Guidelines for Differential Rating
as required by section 161(2A) of the Local Government Act.
The City of Greater Bendigo makes a further distinction within the property value component of
rates based on the purpose for which the property is used to assist in achieving the objective of
equity, efficiency and simplicity, to meet its obligations under the Local Government Act. The rating
structure comprises four broad differential rates being general, commercial/industrial, farm, and
vacant land and a rate concession for recreational land. The detailed description of each differential
rate is included in Appendix B of this document.
Greater Bendigo City Council Budget - 2013/2014 46